S&P 500 Breakout Pulling Back to Old Resistance/New Support
The S&P 500 remains in a strong uptrend based on price action. The price has broken out to new highs, but a pullback to old resistance/new support is likely. This could set up a situation similar to 2016.
On the other hand, a continued drop below about 2900 could trigger some panic and result in a larger decline. It is also worth remembering that, at least at the moment, the bull market is mainly focused on a relatively small contingent of large-cap stocks. Small caps, and most stocks listed in the US, aren't in new-high territory.
At the moment, still trading the uptrend and focusing on strong stocks at or new highs.
On the other hand, a continued drop below about 2900 could trigger some panic and result in a larger decline. It is also worth remembering that, at least at the moment, the bull market is mainly focused on a relatively small contingent of large-cap stocks. Small caps, and most stocks listed in the US, aren't in new-high territory.
At the moment, still trading the uptrend and focusing on strong stocks at or new highs.
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/